<#-- Rebranding: Header Logo--> <#-- Rebranding: Footer Logo-->

Are financial advisors more focused on planning for older generations?

Financial advisors seem more focused on planning for the older generation. Why do you think that’s the case?

Financial Planning
Sort By:
Most Helpful
March 2017

The short answer is yes. A lot of the planning industry has essentially written off the idea of working with younger generations like millennials for various reasons. And frankly, that’s partially because the average age of advisors is 51. Many of them have built great businesses over decades, so they’re inclined to maintain the status quo in working with older generations of clients. Meanwhile, the world has changed around them. In the past, it was difficult to amass significant wealth until the later years of a long career of climbing the corporate ladder. Today, younger people are much more entrepreneurial and may sell businesses for millions before hitting their 30th birthday. They also have totally different priorities. They’re not necessarily buying houses early in life, or staying in one job forever, or focusing on trying to retire at some specific age.

As a result, we believe millennials will define what the planning industry looks like in the next 5 to 10 years. Businesses that don’t adapt will struggle to survive. Whether we like it or not, millennial preferences should begin to dictate how we provide financial planning services in the future. In particular, we think planning will look far more personal than ever before because young people seek happiness in life beyond the numbers. Planning can no longer just be about the bottom line, but about how a client’s money ties in with all other aspects of life. (For more, see “Investment Planning for the Millennial Market Disruption.”)

Advisors also face the challenge of healing self-inflicted reputation wounds. Many young people view advisors as the old suits that don’t necessarily have a client’s best interests at heart. Millennials witnessed one of the greatest financial collapses in our history right as they entered the workforce, many with massive student loan debt. Some of them watched parents lose their homes while the government bailed out the big banks. As advisors, we need to start reaching out our hand and projecting a voice in the marketplace that speaks to their needs and values. We need to actually define what we do. We need to be more transparent than ever. We need to offer simplified technology solutions and a better client experience. And we need to act as empathetic educators, which we think builds the kind of trust younger generations demand.

March 2017
March 2017
March 2017
April 2017